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Government announces 10% hike in basic customs duty on silver

02 Feb 2023 Evaluate

Finance Minister Nirmala Sitharaman in her Budget speech for the 2023-24 announced increasing in basic customs duty on silver, both in dore and semi-manufactured form, to 10 per cent in order to curb imports. Currently, the basic customs duty on silver dore is 6.1 per cent, while on silver unwrought or semi-manufactured items it is 7.5 per cent. She said “customs duties on dore and bars of gold and platinum were increased earlier this fiscal. I now propose to increase the duties on articles made therefrom to enhance the duty differential. I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum.”

To encourage lab-grown diamonds, the government has scrapped the basic customs duty from the current 5 per cent. Currently, India is the world's third-largest silver physical investment market after the US and Germany. The country's silver imports touched a record high of 8,000 tonnes in 2022 on rise in jewellery consumption.

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